refused for director loan agreement.

hi i think i am the most unlucky man in the whole world. my second application is refused as well. my first application is refund for not sending a current appointment report mistakenly by my solicitor and

second application is refused as my accountant did not mention the term the loan is unsecured and subordinated in favour of third-party creditors.
according to HO

Investment Evidence in UK- 0
Registered as Self-Employed or Director - 20
Business Activity at the time of application - 15
Creation of jobs in UK - 20
English Language - 10
Funds Maintenance - 10

Reason for refusal:

As evidence of Investment you have supplied
- A Director Loan Agreement
- Company bank Statements
- Unaudited accounts

The applicant must provide legal agreement between the applicant(in then name that appears on his application) and the company, showing:

1) the terms of the loan

2) any interest that is payable

3) the period of the loan and

4) that the loan is unsecured and subordinated in favour of third-party creditors.

The documents you have supplied to demonstrate the above do not meet the requirements as specified under Appendix A of the immigration rules because the Director Loan does not appear to be unsecured and subordinated in favor of third-party creditors.

Therefore you have failed to meet the requirements of this paragraph and no points have been awarded.



now i don't know what to do any advice please?

"now i don't know what to do any advice please?"

Apply again and actually follow guidance.

seasky wrote:"now i don't know what to do any advice please?"

Apply again and actually follow guidance.

unfortunately it was my second application

seasky wrote:"now i don't know what to do any advice please?"

Apply again and actually follow guidance.

Sorry to know that about 2nd refusal . Have you ever read the Policy Guidance .Your both of the refusals are due not following the guide . I guess both times you were depending on your accountant or solicitor .Did they awarded you investment points on first application . Not sure if you can reapply 3rd time or not wait for senior members to reply on that . Good luck

So quite unfortunate. You rely solely on your solicitor without checking through, and especially the second time again . Its going to be a very painful and costly lesson

This is 100% your mistake, how do you run a business when you dont check the documentations properly. Sorry for being harsh but this is your mistake, you should check every thing properly especially 2nd time.
Try to submit 3rd application, however I am not sure you would be able to do this because your status is now not covered by 3C.

Very sorry to hear about this.

Did your agreement not mention this anywhere, or do you mean it was not in the accounts?

That's sad but did u send them the same director loan before when u applied for the first application?

Your first application should have proved to you that you need to get to the grips with your application and fire your solicitor.
You do not get another chance to apply as you have been an over stayer beyond 14 days.

hi i think i am the most unlucky man in the whole world. my second application is refused as well. my first application is refund for not sending a current appointment report mistakenly by my solicitor andsecond application is refused as my accountant did not mention the term the loan is unsecured and subordinated in favour of third-party creditors.
according to HO

I disagree. Leaving your future at the hands of an inept solicitor and failure to even read the guide once is the reason why you did not succeed
Solicitors are NOT RESPONSIBLE for your application, YOU ARE. Almost 99% of refusals reported here are simply due to failure to read the Tier 1E guide.

zimba88 wrote:Your first application should have proved to you that you need to get to the grips with your application and fire your solicitor.
You do not get another chance to apply as you have been an over stayer beyond 14 days.

hi i think i am the most unlucky man in the whole world. my second application is refused as well. my first application is refund for not sending a current appointment report mistakenly by my solicitor andsecond application is refused as my accountant did not mention the term the loan is unsecured and subordinated in favour of third-party creditors.
according to HO

I disagree. Leaving your future at the hands of an inept solicitor and failure to even read the guide once is the reason why you did not succeed
Solicitors are NOT RESPONSIBLE for your application, YOU ARE. Almost 99% of refusals reported here are simply due to failure to read the Tier 1E guide.

Hi zimba so what options will be left in this case . Can he apply in any other different category or reapply for initial leave while in UK .

No. Applying under any category in the UK is only allowed if you have over stayed for less than 14 days.

zimba88 wrote:No. Applying under any category in the UK is only allowed if you have over stayed for less than 14 days.

Don't he get 14 days for AR after 2nd refusal . Please if you can just explain when he become over stayer .

No. You become an overstayer when you apply for a 2nd application, that is when your section 3C ends

zimba88 wrote:No. You become an overstayer when you apply for a 2nd application, that is when your section 3C ends

Thanks zimba for clearing that doubt . But he will be able to reapply from home country for initial leave again with the same business and funds has already been invested .

Thats really sad to know. Do not the solicitors show you application before sending? Or people get solely dependant on solicitor as they pay a huge amount of money.
I believe you cannot apply third time while u are in UK.

Thanks zimba for clearing that doubt . But he will be able to reapply from home country for initial leave again with the same business and funds has already been invested .

Yes but only if the funds were invested within 12 months of you applying again, otherwise fresh investment funds are required.
For most people, this is not possible as the money is invested over 3 years.

very unfortunate case.

zimba88 wrote:

Thanks zimba for clearing that doubt . But he will be able to reapply from home country for initial leave again with the same business and funds has already been invested .

Yes but only if the funds were invested within 12 months of you applying again, otherwise fresh investment funds are required.
For most people, this is not possible as the money is invested over 3 years.

So it has to be 200k route even the first time was PSW 50k route .

You are not switching any more when you are outside, so you need at least 200K unless you get 50K from UKTI, seed funds or venture capital firms.

unefortunate,as i understand This is one line two word ''unsecured'' missing in Director loan all other info and all investment genuinely invested.

Director loan agreement is basically between you and your company. I am not sure.

You don't have much option but i would suggest go for JR which is held by third party Court,not by home office.

If your case is 100% genuine and all rest points awarded,This is minor mistake in my point of view.
You are Lender,100% shareholder and only Director of company ?

JR normally take longer time if you can afford it.But its only best way for you.

I am not expert i am also same boat and in very difficult situation because of an solicitor mistake.
Thanks,

shroth wrote:hi i think i am the most unlucky man in the whole world. my second application is refused as well. my first application is refund for not sending a current appointment report mistakenly by my solicitor and

second application is refused as my accountant did not mention the term the loan is unsecured and subordinated in favour of third-party creditors.
according to HO

Investment Evidence in UK- 0
Registered as Self-Employed or Director - 20
Business Activity at the time of application - 15
Creation of jobs in UK - 20
English Language - 10
Funds Maintenance - 10

Reason for refusal:

As evidence of Investment you have supplied
- A Director Loan Agreement
- Company bank Statements
- Unaudited accounts

The applicant must provide legal agreement between the applicant(in then name that appears on his application) and the company, showing:

1) the terms of the loan

2) any interest that is payable

3) the period of the loan and

4) that the loan is unsecured and subordinated in favour of third-party creditors.

The documents you have supplied to demonstrate the above do not meet the requirements as specified under Appendix A of the immigration rules because the Director Loan does not appear to be unsecured and subordinated in favor of third-party creditors.

Therefore you have failed to meet the requirements of this paragraph and no points have been awarded.



now i don't know what to do any advice please?

What have you decided now ? what will be your next course of action ?